DEPUTY FINANCE MINISTER SAYS THERE’S NO TIME LIKE THE PRESENT FOR FOREIGN INVESTORS TO JUMP IN
Foreign investors should once again take a closer look at Malaysia as a property investment destination, says deputy finance minister Datuk Lee Chee Leong, because they can now take advantage of the comparatively property value in the country.
He recently told national news agency Bernama that despite the real estate sector being in its current slow state, it has remained largely stable and resilient in the first half of the year. This, he added, hints at an uptrend in 2018.
“In line with the strong economic growth, activities in the housing market have shown some signs of improvement, with the total housing transaction value recording a positive annual growth of 0.9 per cent, for the first time since 2015,” Lee said.
He added that the housing transaction volume has also seen some improvement, recording a smaller contraction of 5.4% in the first quarter this year compared with the -12.7% it registered in the fourth quarter of 2016.
Speaking at the ASEAN Real Estate Network Alliance (ARENA) Convention & Exhibition (ACE) 2017 late last month, Lee pointed out that financing by banks for the purchase of affordable houses remains available.
This is reflected by a loan approval rate of about 72% for houses priced below RM500,000.
Moving forward, he said the real estate sector is expected to benefit from higher demand due to stronger growth prospects and stable employment outlook.
The two-and-a-half day conference ARENA conference last month was aimed at helping Malaysian real estate practitioners look beyond our borders and cross-sell local properties in other markets.
Exporting our property appeal helps provide alternative markets to focus on when the local market is facing economic headwinds.
“ASEAN is growing tremendously and there are huge economic opportunities for ARENA members. Each ASEAN country, however, has its own individual characteristics and legal framework for property transactions,” said ACE 2017 organising chairman and secretary general Soma Sundrum.
“Through programmes such as ACE 2017, we can share and better understand each market, especially when it comes to best practices,” he added.